AUD/FJD Outlook:
The AUD/FJD exchange rate is slightly positive but likely to move sideways, trading 1.9% above its 90-day average and near the upper limit of its recent range. However, mixed signals from global economic developments may limit significant movements.
Key drivers:
• Rate gap: The Reserve Bank of Australia has recently raised rates, while the Reserve Bank of Fiji maintains a very low rate, benefiting the AUD.
• Risk/commodities: Rising commodity prices support the AUD, as Australia is a major exporter of resources, while global trade tensions pressure the FJD's stability.
• One macro factor: The IMF forecasts slower economic growth for Fiji, which could dampen its currency's performance.
Range:
The AUD/FJD is likely to hold within its recent range, staying between 1.4847 and 1.5736.
What could change it:
• Upside risk: A continuation of strong commodity prices could further boost the AUD.
• Downside risk: A sudden deterioration in global economic conditions could negatively impact the AUD.
